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Which of these statements about stock price, company value, and profitability measurement is true?

a. According to the abnormal net income model, the market value of a firm is equal to its book value plus the PV of its expected future economic profits.

b. Changing assessments of future profit performance affect stock prices today.

c. Eventually, abnormal net income can be expected to decay as market competition increases.

d. all of the above

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92176625

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